If your own a small business, your inventory supervisor can contribute to your bottom line. Though this individual does not sell or market, she does save you money. Inventory may be your second-highest expense behind payroll, and hiring the right person to supervise this aspect of your business can help you control costs.

Establishing Check-in Procedures

The inventory supervisor must establish procedures for receiving goods. Many times, vendor invoices do not match the number of goods actually received. The supervisor should have a system in place not only for checking shipments that come in, but also for reporting discrepancies to management.

Establishing Valuation Method

The inventory supervisor must establish either inventory valuation methods or stock inventory in such a way that it complies with the company's inventory valuation methods. If the inventory must be rotated for a first-in-first-out valuation, the supervisor must ensure that older stock is placed in the fronts of shelves. If the company uses a last-in-first-out method, the supervisor should place new stock in the front. Average cost inventory valuation does not require the supervisor to physically arrange the stock in any particular order, but the supervisor should note any increases in purchase price and make management aware of a rising average cost.

Creating Stock Picking Procedures

Inventory employees must be trained and supervised so that they retrieve stock in the proper order. The supervisor must also make sure employees enter the retrieved item in the inventory control software system. This makes sure the software has the data to provide inventory level reports and reordering notices.

Shipping Procedures

The inventory supervisor must ship items in a timely manner as part of order fulfillment. The shipping procedures must include not only retrieval and packing of items, but record keeping to inform the sales department items that have been shipped to customers.

Maintaining Minimum Inventory

Perhaps the most vital role of the inventory supervisor is maintaining the least amount of inventory possible. This allows the company to use less cash on excess inventory and apply it elsewhere, such as in marketing and advertising. The inventory supervisor uses sales projections and vendor delivery times to establish an ordering system that replenishes shelves without overstocking them.

About the Author

Kevin Johnston writes for Ameriprise Financial, the Rutgers University MBA Program and Evan Carmichael. He has written about business, marketing, finance, sales and investing for publications such as "The New York Daily News," "Business Age" and "Nation's Business." He is an instructional designer with credits for companies such as ADP, Standard and Poor's and Bank of America.